I need help understanding requirement 2
Data Table Headset manufactures headphone cases. During September 2024, the company produced and sold 106,000 cases and recorded the following cost data (Click the icon to view the cost data) Read the requirements Requirement 1. Compute the cost and efficiency variances for direct materials and direct labor Begin with the cost variances Select the required formulas, compute the cost variances for direct materials and direct labor, and identify whether each variance is favora standard cost, SQ = standard quantity.) Standard Cost Information Quantity Cost Direct Materials 2 parts $0 16 per part Direct Labor 0.02 hours 11.00 per hour Variable Manufacturing Overhead 0.02 hours 8 per hour Fixed Manufacturing Overhead ($30 720 for static budget volume of 96,000 units and 1,920 hours, or $16 per hour) Variance Direct materials cost variance Formula (AC-SC) AQ (AC-SC XAQ = $ 10,450 U = $ 162 U Actual Cost Information Direct labor cost variance Direct Materials $ (209,000 parts @ $0.21 per part) (1 620 hours @ $11.10 per hour) Direct Labor Next compute the efficiency variances. Select the required formulas, compute the efficiency variances for direct materials and direct labor, and identify whether each vari overhead, SC = standard cost, SQ = standard quantity) Variable Manufacturing Overhead Fixed Manufacturing Overhead Variance 480 F Formula (AQ - SQ) SC (AQ - SQ) SC Direct materials efficiency variance Direct labor efficiency variance $ = $ 5,500 F Print Done Requirement 2. For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume variances Now compute the variable overhead cost and efficiency variances Select the required formulas, compute the variable overhead cost and efficiency variances, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used. AC= FOH = fixed overhead, SC = standard cost; SQ = standard quantity, VOH = variable overhead) Formula (AC-SC) XAQ (AQ-SQ) > SC Variance 4960 F VOH cost variance VOH efficiency variance Headset hlal ES: (Click the icon to view the cost data) Read the requirements Requirement 1. Compute the cost and efficiency variances for direct materials and direct labor. Standard Cost Information Quantity Cost Direct Materials 2 parts $0.16 per part Direct Labor 0.02 hours 11.00 per hour Variable Manufacturing Overhead 0.02 hours 8 per hour Fixed Manufacturing Overhead ($30.720 for static budget volume of 96,000 units and 1,920 hours, or $16 per hour) Begin with the cost variances. Select the required formulas compute the cost variances for direct materials and dire standard cost; SQ = standard quantity.) Formula Direct materials cost variance Variance = $ 10,450U = $ 162 U (AC-SC) AQ (AC - SC) XAQ Actual Cost Information Direct labor cost variance Direct Materials (209,000 parts @ $0.21 per Pan (1,620 hours @ $11.10 per hour) Direct Labor Next compute the efficiency variances. Select the required formulas, compute the efficiency variances for direct mat overhead, SC = standard cost SQ = standard quantity.) $ 43,890 17,982 9,000 30,000 Variable Manufacturing Overhead Fixed Manufacturing Overhead Formula Variance 480 F $ $ 5,500 F -X Requirements ad cost and efficiency variances and the Direct materials efficiency varianc (AC - SC) XAQ Direct labor efficiency variance (AC-SC) XSQ Requirement 2. For manufacturing (AQ - SQ)X AC (AQ - SQ)SC Now compute the variable overhead Actual FOH - Allocated FOH FOH = fixed overhead, SC = standar Actual FOH - Budgeted FOH Budgeted FOH - Allocated FOH he required formulas, compute the varia variable overhead.) 1. Variance 2. Compute the cost and efficiency variances for direct materials and direct labor For manufacturing overhead, compute the vanable overhead cost and efficiency variances and the fixed overhead cost and volume variances. Headset's management used better quality materials during September Discuss the trade-off between the two direct material variances VOH cost variance 3. VOH efficiency variance (AQ - SQ) SC Choose from any list or enter any number in the input fields and then click Check Answer Print Done narts ompany produced and sold 106,000 cases and recorded the following cost data. Data Table - X cost van vorable Standard Cost Information Quantity Cost Direct Materials 2 parts $0.16 per part Direct Labor 0.02 hours 11.00 per hour Variable Manufacturing Overhead 0.02 hours 8 per hour Fixed Manufacturing Overhead ($30,720 for static budget volume of 96.000 units and 1.920 hours, or $16 per hour) mpute the ble (F) or SC Actual Cost Information SC Direct Materials erhead cos (209.000 parts @ $0.21 per part) (1.620 hours @ $11.10 per hour) Direct Labor $ 43.890 17.982 d the reg cost, SQ Variable Manufacturing Overhead Fixed Manufacturing Overhead 9.000 th variance 30,000 Print Done en dick Check Answer Clear All - File Explorer
